Has the US Federal Reserve just signalled it won’t raise interest rates for the next five years?
Thursday 03 Sep 2020 Author: Martin Gamble
US Federal Reserve chair Jerome Powell delivered what many Fed watchers had been expecting at the annual Jackson Hole speech on 27 August, when he signalled a change to monetary policy goals. In future the central bank will target average inflation, which means accepting periods of overshooting and undershooting the 2% target. Importantly the bank said it wasn’t tying itself to any formula, moving it away from a data...